STATE OF ALASKA

ALASKA OIL AND GAS CONSERVATION COMMISSION

3001 Porcupine Drive

Anchorage Alaska 99501-3192
Re:THE APPLICATION OF ARCO                 )  Conservation Order No. 382
ALASKA, INC. for an order granting         )
an exception to spacing requirements       )
of Title 20 AAC 25.055 to                  )  ARCO Alaska, Inc.
provide for the drilling of the Pt.        )  Pt. McIntyre P1-09
McIntyre P1-09 delineation oil well in     )
the Prudhoe Bay Unit.                      )
                                              September 10, 1996
IT APPEARING THAT:

1. ARCO Alaska, Inc. submitted an application dated August 21, 1996 requesting exception to the well spacing provisions of 20 AAC 25.055 (a)(1) to allow drilling the ARCO Pt. McIntyre P1-09 exploration oil well to a bottomhole location within 500 feet of a quarter-section line within an undefined oil pool in the Prudhoe Bay Unit on the North Slope.

2. Notice of opportunity for public hearing was published in the Anchorage Daily News on August 23, 1996 pursuant to 20 AAC 25.540.

3. No protests to the application were received.

FINDINGS:

1. The Pt. McIntyre P1-09 exploration oil well will be drilled as a deviated hole with a surface location 1438' from the south line (FSL) and 752' from the east line (FEL) of Section 16, T12N, R14E, Umiat Meridian (UM) and a proposed bottomhole location 1311' FNL and 5' FEL of Section 16, T12N, R14E, UM

2. Offset owners BP Exploration (Alaska) Inc., Exxon Corporation and the State of Alaska have been duly notified.

3. An exception to the well spacing provisions of Title 20 AAC 25.055 (a)(1) is necessary to allow the drilling of this well.

CONCLUSION:

Granting a spacing exception to allow drilling of the ARCO Pt. McIntyre P1-09 exploratory oil well will not result in waste nor jeopardize correlative rights.

NOW, THEREFORE, IT IS ORDERED:

ARCO Alaska, Inc.'s application for exception to the well spacing provisions of Title 20 AAC 25.055 (a)(1) for the purpose of drilling the ARCO Pt. McIntyre P1-09 well is approved.

DONE at Anchorage, Alaska and dated September 10, 1996.

David W. Johnston, Chairman
Alaska Oil and Gas Conservation Commission

Tuckerman Babcock, Commissioner
Alaska Oil and Gas Conservation Commission

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